Benchmark Electronics Inc. (BHE), Restoration Hardware Holdings Inc. (RH) Among the Stocks Being Targeted by Hedgies This Week

As revealed by a recently-submitted SEC filing, Glenn W. Welling’s Engaged Capital LLC recently nominated Herbert K. Parker for election to Benchmark Electronics Inc. (NYSE:BHE)’s Board of Directors, to be held at its upcoming 2016 Annual Meeting of Stockholders. The nominee replaces Lisa M. Kelley, who recently withdrew as one of Engaged Capital’s four nominees. Engaged Capital believes that Benchmark Electronics “contacted Ms. Kelley’s employer to pressure her to withdraw”, in an attempt to block Engaged Capital’s efforts of overhauling the Board. It should be mentioned that Ms. Kelley serves as a Chief Audit Executive at Avnet Inc., a long-term supplier to Benchmark. Benchmark’s officials commented on Engaged Capital’s statement, saying that “it would be a conflict of interest for a member of management team at a significant supplier of Benchmark to serve on the Benchmark Board of Directors”.

The investment firm holds a 4.8% stake in the provider of integrated manufacturing, design and engineering services and product life cycle solutions. Benchmark Electronics Inc. (NYSE:BHE)’s sales for 2015 totaled $2.5 billion, down by 9% year-over-year. The decrease was mainly attributable to a decrease in Telecommunications revenue mainly due to product life cycle transitions at one of the company’s top customers. The shares of Benchmark Electronics are nearly 6% in the green year-to-date. Royce & Associates, founded by Chuck Royce, reported owning 2.43 million shares of Benchmark Electronics Inc. (NYSE:BHE) through the latest round of 13F filings.

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